Final answer:
Operations management adds economic value by enhancing product and service value and identifying new markets for existing products, aiming to improve consumer offerings and company profitability.
Step-by-step explanation:
Operations management can add economic value primarily by enhancing the value of products and services and by identifying new markets for existing products. It does not typically aim to increase costs to customers but strives to balance cost-efficiency with quality to provide consumers with better or less expensive products. By optimizing various aspects of operations, such as the ability to expand or reduce production, set the price they choose, open new factories or sales facilities or close them, hire workers or lay them off, and start selling new products or stop selling existing ones, businesses can enhance their competitiveness and profitability.
For example, if a messenger company's main cost is buying gasoline, a fall in the price of gasoline allows the company to operate more cheaply, potentially expanding its service area and increasing supply due to higher profits. Such strategic moves by operations management lead to enhanced economic value for the company and its stakeholders.